What you should know about your Credit Card billing cycle?

Summary: What is the billing cycle of the credit card. How does it effect your payments, due date, and credit score. Know more!

04 Jan 2022 by Team FinFIRST

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Your credit card billing cycle is possibly the most important component of your credit card. It affects your payments, due date, and credit score

Credit cards can help you save and earn more, but you need to understand the basic information to ensure that you get the most out of them. Knowing your billing cycle is the first step to wisely using your credit card. The billing cycle determines the amount payable for purchases made with your credit card.

Understanding the details can help you save money on interest and late penalties. To that effect, let us see how a credit card payment cycle works and how it impacts the amount you owe every month.

What is a credit card billing cycle?

The billing cycle, also known as the statement cycle, refers to the time frame in which a bill is issued. The credit card statement for the month will represent the expenditures made throughout the period. For instance, if your credit card due date is the 4th of every month, your billing cycle will run from the 5th of the previous month to the 3rd of the next month.

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What is the minimum amount due?

The minimum amount due is the least amount you must pay every month against your credit card's unpaid debt to avoid late payment charges. It is usually 5% of the total amount owed on your card. Active EMIs, as well as any extra expenses or GST, is included in it. Although you will not be charged a late payment fee, if you pay the minimum amount required by the credit card due date, credit card interest charges still apply to the outstanding balance.

How does the credit card billing cycle affect your credit score?

Credit card companies report the details of your transactions to credit agencies. They have the details of every transaction in your billing cycle. If you overshoot your credit limit in a billing cycle, it reflects negatively on your credit score.

Also, missed payments, delayed payments, and only paying the minimum amount required can impact your credit score. If you do not pay the minimum amount due by the credit card due date, your credit score will take a hit.

The statement you get includes purchases, withdrawals, payments, refunds etc during the billing cycle. You must pay at least the minimum amount due at the end of every cycle to avoid penalties.

Is it possible to change your credit card due date?

Your billing cycle determines your credit card due date. While the cycle is set by the lender, you can change it after the first month.

Where can I find my credit card billing cycle and due date?

You can see your billing date, payment due date, minimum amount due and all the other account information in your monthly statement. Your billing statement will arrive at your listed postal address or as an e-statement on your registered e-mail address. You can also check your latest statements by logging into your mobile banking app.

At IDFC FIRST Bank, you can relish the benefits of a reasonable credit card interest rate and even enjoy receiving rewards on every purchase you make with your card.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirst.bank.in for latest updates.